By all means, include accurate information about Social Security, because for most Americans, it will make up a large portion of their retirement income. According to the Social Security Administration, it will replace roughly 40% of pre-retirement income for the typical retiree.
Considering that many financial advisors recommend striving for replacement of 70% of pre-retirement income, Social Security may account for more than half of the total in retirement. Yet, misunderstandings about the program abound.
When you provide education for pre-retirees, don’t wing it. Ask your plan service providers if they can offer specific materials about Social Security. It can be especially helpful for this group to have one-on-one meetings with a financial advisor when they have an estimate of their Social Security income in-hand. Among other valuable topics, pre-retirees need to understand the long-term impact of starting their Social Security benefits too early.